June 10, 2015 at 17:11Peaceful CPA
The recent trend in the field of Internet marketing can be considered the CPA format, when the calculation between the contractor and the contractor occurs only when a specific financial indicator is achieved. About how the CPA market is structured, about the existing models of cooperation and their fundamental differences from each other in the story of Pavel Panov, head of CPA at Kokoc.com (Kokoc Group).
What is a CPA and who needs it?
CPA (Cost Per Action) is a model of financial interaction in the field of online advertising, in which the advertiser pays not for impressions or clicks, but for specific user actions on the site. For example, buying a product, installing a mobile application, registering in a game or forum, filling out a questionnaire.
The peculiarity of CPA is that payment is made on the principle of "evening chairs, morning money." That is, first the web-master fulfills his part of the transaction: for example, he brings 100 people who must fill out a questionnaire on the advertiser's website, and only after that the customer pays the result.
Who cares about the CPA model? First of all, companies selling goods or services of mass demand: online stores, tour operators, banks, microcredit organizations, car dealers, online games, dating sites, video services. But B2B and the luxury segment of CPA are unlikely to give a result.
Webmasters attract traffic to the advertiser's website in two ways:
- through their own traffic sources;
- through traffic arbitration.
Webmasters using the first method have one or more of their own resources, for example, a website, a group in social networks, for the audience of which they select advertising. Moreover, they carefully approach this process, since the CPA assumes that the work is not for the transition, but for the result: accordingly, you need to place an advertising offer (offer) to which the visitors of the resource will definitely respond. For example, a site writing about fashion may be interested in offers from clothing, footwear, accessories, and cosmetics stores.
The second category of webmasters, who are called “arbitrageurs,” do not have their own platform, but even without it they masterfully work with traffic, buying it for clicks / impressions in one place and selling it for leads in another. For example, the web-master agrees with the advertiser, which will lead buyers to the site for 10% of each sale. Places an advertisement in a teaser or social network with a link to a client’s resource. At the same time, he buys clicks that users made. And only if people who come to the advertiser's website perform a specific action (buy, fill out a questionnaire), then the webmaster will receive his interest. As a rule, the benefit is higher than the cost per click. For example, 1 click costs 10 rubles, and the percentage of the sale brings 1000 rubles (10% of 10 000 rubles).
CPA Features
There are three CPA work models.
Firstwhen the advertiser directly accesses the webmaster. Most often, a client with a segmented line of business and a web-master with their own platform collaborate in this format. For example, the owner of an online store for gamers who sells headphones, mice, keyboards, joysticks, is interested in buying CPA ads on a specialized site where the target audience is gathered. Naturally, he will turn to a web-master who owns a resource about popular games. The main plus of the model is that the advertiser immediately finds the target audience. However, he needs to carry out a separate integration with each site and pay a lot of bills every month. As a result, the advertiser has too many sites that need to be controlled, spend time independently monitoring the quality of work, or hire a staff of subordinates.
This model is most interesting for small businesses (a young site with traffic up to 30 thousand per month), which is important to increase the flow of traffic to the site and establish business processes.
Second modelIt is built on the cooperation of the advertiser and the partner network - a tender platform that aggregates into both categories of webmasters. The advertiser places an offer on her site and finds the performers. Partner networks include all categories of webmasters - not only resource owners, but also arbitrageurs, which are not easy for advertisers to find on the Internet. Collaboration with an affiliate network saves the customer time for searching webmasters. However, most of these sites put forward stringent requirements for advertisers. For example, they agree to work with a client whose site is visited daily by 100,000 people. Despite the fact that in Russia there are few such resources. And due to the lack of a customer-oriented approach, the quality of affiliate networks often leaves much to be desired.
The model of cooperation with an affiliate network is popular among medium-sized businesses with resource traffic from 30,000 per month, and the recommendations made by affiliate networks help them to establish business processes.
The third model of CPA collaboration is the advertiser's appeal to an advertising agency acting as an aggregator of affiliate networks. It offers the client several options for placing an offer using the most suitable affiliate programs. The relevance of the proposals depends on changes in the online advertising market. The most modern option is the Green Offer standardwhose benefits, incidentally, were appreciated by Kokoc Group customers. It helps advertisers increase sales by eliminating delays in payments and significantly improving the quality of traffic coming from webmasters.
The “Green Offer” frees advertisers from having to pay webmasters for every deal made. Its deposit system makes it possible to test the service for a month. This time is enough to determine the average value of the daily number of sales on the offer and subsequently lay down the amount for their payment. If, for example, network traffic brought 300 sales, then you need to make an appropriate deposit for the next month. The money goes to pay for the services of webmasters: after each sale, funds are automatically debited from the account. At the same time, the standard format of work does not change: monthly payments are saved, but webmasters get additional motivation in the form of prompt payment of fees, which naturally stimulates them to bring more potential buyers to the advertiser's site.
It is important that the “Green Offer” speeds up the process of reconciling traffic quality from 1 month to 2 weeks: the automation of the process allows webmasters to quickly evaluate the feasibility and volume of subsequent investments, and customers receive more sales by increasing the rate of turnover.
The agency takes full control over the work of affiliate networks and webmasters, saving the client’s time. And unlike affiliate programs, it offers an individual approach to each advertiser. Of course, working with an agency is more expensive than the two previous models of cooperation, as it implies a commission. This option is suitable for businesses with a large amount of work with affiliate networks, which require significant additional resources to control.
What is a CPA and who needs it?
CPA (Cost Per Action) is a model of financial interaction in the field of online advertising, in which the advertiser pays not for impressions or clicks, but for specific user actions on the site. For example, buying a product, installing a mobile application, registering in a game or forum, filling out a questionnaire.
The peculiarity of CPA is that payment is made on the principle of "evening chairs, morning money." That is, first the web-master fulfills his part of the transaction: for example, he brings 100 people who must fill out a questionnaire on the advertiser's website, and only after that the customer pays the result.
Who cares about the CPA model? First of all, companies selling goods or services of mass demand: online stores, tour operators, banks, microcredit organizations, car dealers, online games, dating sites, video services. But B2B and the luxury segment of CPA are unlikely to give a result.
Webmasters attract traffic to the advertiser's website in two ways:
- through their own traffic sources;
- through traffic arbitration.
Webmasters using the first method have one or more of their own resources, for example, a website, a group in social networks, for the audience of which they select advertising. Moreover, they carefully approach this process, since the CPA assumes that the work is not for the transition, but for the result: accordingly, you need to place an advertising offer (offer) to which the visitors of the resource will definitely respond. For example, a site writing about fashion may be interested in offers from clothing, footwear, accessories, and cosmetics stores.
The second category of webmasters, who are called “arbitrageurs,” do not have their own platform, but even without it they masterfully work with traffic, buying it for clicks / impressions in one place and selling it for leads in another. For example, the web-master agrees with the advertiser, which will lead buyers to the site for 10% of each sale. Places an advertisement in a teaser or social network with a link to a client’s resource. At the same time, he buys clicks that users made. And only if people who come to the advertiser's website perform a specific action (buy, fill out a questionnaire), then the webmaster will receive his interest. As a rule, the benefit is higher than the cost per click. For example, 1 click costs 10 rubles, and the percentage of the sale brings 1000 rubles (10% of 10 000 rubles).
CPA Features
There are three CPA work models.
Firstwhen the advertiser directly accesses the webmaster. Most often, a client with a segmented line of business and a web-master with their own platform collaborate in this format. For example, the owner of an online store for gamers who sells headphones, mice, keyboards, joysticks, is interested in buying CPA ads on a specialized site where the target audience is gathered. Naturally, he will turn to a web-master who owns a resource about popular games. The main plus of the model is that the advertiser immediately finds the target audience. However, he needs to carry out a separate integration with each site and pay a lot of bills every month. As a result, the advertiser has too many sites that need to be controlled, spend time independently monitoring the quality of work, or hire a staff of subordinates.
This model is most interesting for small businesses (a young site with traffic up to 30 thousand per month), which is important to increase the flow of traffic to the site and establish business processes.
Second modelIt is built on the cooperation of the advertiser and the partner network - a tender platform that aggregates into both categories of webmasters. The advertiser places an offer on her site and finds the performers. Partner networks include all categories of webmasters - not only resource owners, but also arbitrageurs, which are not easy for advertisers to find on the Internet. Collaboration with an affiliate network saves the customer time for searching webmasters. However, most of these sites put forward stringent requirements for advertisers. For example, they agree to work with a client whose site is visited daily by 100,000 people. Despite the fact that in Russia there are few such resources. And due to the lack of a customer-oriented approach, the quality of affiliate networks often leaves much to be desired.
The model of cooperation with an affiliate network is popular among medium-sized businesses with resource traffic from 30,000 per month, and the recommendations made by affiliate networks help them to establish business processes.
The third model of CPA collaboration is the advertiser's appeal to an advertising agency acting as an aggregator of affiliate networks. It offers the client several options for placing an offer using the most suitable affiliate programs. The relevance of the proposals depends on changes in the online advertising market. The most modern option is the Green Offer standardwhose benefits, incidentally, were appreciated by Kokoc Group customers. It helps advertisers increase sales by eliminating delays in payments and significantly improving the quality of traffic coming from webmasters.
The “Green Offer” frees advertisers from having to pay webmasters for every deal made. Its deposit system makes it possible to test the service for a month. This time is enough to determine the average value of the daily number of sales on the offer and subsequently lay down the amount for their payment. If, for example, network traffic brought 300 sales, then you need to make an appropriate deposit for the next month. The money goes to pay for the services of webmasters: after each sale, funds are automatically debited from the account. At the same time, the standard format of work does not change: monthly payments are saved, but webmasters get additional motivation in the form of prompt payment of fees, which naturally stimulates them to bring more potential buyers to the advertiser's site.
It is important that the “Green Offer” speeds up the process of reconciling traffic quality from 1 month to 2 weeks: the automation of the process allows webmasters to quickly evaluate the feasibility and volume of subsequent investments, and customers receive more sales by increasing the rate of turnover.
The agency takes full control over the work of affiliate networks and webmasters, saving the client’s time. And unlike affiliate programs, it offers an individual approach to each advertiser. Of course, working with an agency is more expensive than the two previous models of cooperation, as it implies a commission. This option is suitable for businesses with a large amount of work with affiliate networks, which require significant additional resources to control.